New data shows Australians are paying at least 20 per cent more for new cars than they were just two-and-a-half years ago.

Price My Car Founder, David Lye told Oly Peterson on Perth Live prices have risen due to manufacturing delays and costs, but also because car dealers aren’t discounting like they used to.

“Its been widely reported about the surge in used cars prices, but for the first time we’ve done the numbers on new cars,” he said.

“There’s a big waiting list, you’ve got to wait six to nine months for a car… and if the dealers know they’ve got more buyers than they do cars…why on earth would they.”

In some good news Mr Lye said there a glimmer of hope as it is starting to improve, but supply is not going to come back online until the middle of next year at the earliest.

Click PLAY to hear the full chat on Perth Live below: